- Bitcoin hits an all-time high post-government shutdown.
- Government halt affects crypto ETF reviews.
- Increased crypto discussions among financial experts.
The U.S. government shutdown starting on October 1, 2025, coincided with Bitcoin’s bear market bottom and a subsequent rally exceeding an all-time high of $125,700.
The shutdown’s impact highlights crypto’s role as a store of value amid political uncertainty, influencing institutional inflows and market positioning.
U.S. Shutdown Influences Crypto Surge
Bitcoin has recently reached an all-time high in parallel with the U.S. government shutdown that commenced on October 1, 2025. The shutdown has also impacted Ethereum and select altcoins. Similar market reactions have been observed in past shutdowns.
Key players in this situation include the U.S. Congress, responsible for the shutdown, and the SEC, which has frozen operations. Crypto leaders such as Fabian Dori of Sygnum Bank have noted,
"The US government shutdown has renewed discussion around Bitcoin’s store-of-value role, as political dysfunction underscores interest in decentralized assets."
Impact on Crypto ETF Reviews and Institutional Response
The shutdown's effects include a pause in cryptocurrency ETF reviews, affecting assets like Solana, Litecoin, and Dogecoin. Market analysts suggest that reducing uncertainty post-shutdown could be advantageous for the crypto markets. Jake Kennis, Senior Research Analyst at Nansen, commented,
"Crypto markets could benefit from a shutdown resolution if it reduces uncertainty and pushes the Fed toward a more dovish stance."
Institutional inflow into spot crypto ETFs has surpassed $120 billion amidst regulatory halts, indicating strategic allocations. This situation has sparked renewed discussions on Bitcoin’s role as a store of value.
Liquidity Shifts and Historical Context
Shifts in liquidity and on-chain data point towards stablecoin accumulation and repositioning towards crypto hedges. Such patterns indicate investor movement towards decentralized assets amid economic uncertainty.
Historically, shutdowns have delayed ETF approvals, causing market shifts. However, institutional adoption in 2025 highlights crypto's strategic role, as seen in past shutdowns’ volatility and portfolio opportunities.